By Matthew Ekholm, Digital Product Passport and Circularity Specialist at Protokol
As global warming continues to cause major disruption, greater sustainability is becoming a growing business imperative. In fact, 64% of consumersrank sustainability among their topthree purchasing considerations, so it is clear that manufacturers must make their processes more sustainable if they are to connect with the modern consumer. As companies such as Microsoft increasingly prioritize sustainable practices, the evolving consumer view on sustainability is having a significant impact on shaping business priorities.
In fact, it is more than just a consumer focus, with some governments also leaping to implement more sustainable practices. The European Union’s Ecodesign for Sustainable Products Regulation (ESPR) is a key example of this and stands as part of the EU’s greater Circular Economy Action Plan. In simple terms, the regulation aims to push businesses to prioritize eco-friendly product design and lifecycle management. It is worth noting, that the EU’s ESPR is not set just to affect European companies but all businesses trading in the EU marketplace, irrelevant to where they’re based.
Alongside rising government pressure, the rise of greenwashing - the act of businesses exaggerating or wrongly claiming sustainability credentials - poses another challenge businesses must now face. As the general public often struggles to separate true sustainability from baseless claims, it is more important now than ever that companies begin to demonstrate their true commitment.
There is one simple way to do this - by embracing regulatory frameworks like the ESPR, whether based in Europe or not, manufacturers can not only demonstrate their true commitment to sustainability, but also foster consumer trust in an age of greenwashing and position themselves as a sustainable firm of the future.
Business sustainability and fostering organic consumer relations
Many businesses are likely to view the EU’s varied circularity regulations, including the ESPR, as complex and time-consuming. This, combined with the strain businesses feel from having to meet evolving consumer needs and the public’s demand for more sustainable products, could easily make any company feel unprepared.
However, if businesses are considered and employ a strategic mindset, there is an incredibly clear way to solve one issue by leaning into another. Through their ESPR compliance efforts, and particularly the legislation’s mandate of Digital Product Passports (DPPs), businesses can comply and prove their sustainability credentials to appeal to consumers in one motion. Even for companies that don’t sell in the EU marketplace or to whom the mandate doesn’t apply, by employing DPPs, brands can foster a transparent relationship with the modern consumer while prioritizing product circularity and sustainable sourcing.
The two problems facing manufacturers and the one strategic solution
In simple terms, DPPs act as a digital record of a physical product– facilitating information sharing that is vital for both the consumer and producer in terms of the sustainability credentials of an item. They securely keep track of information about the product across its lifecycle, with the ability to include event or transactional data, or even data about its sustainability credentials, like the carbon footprint of its production and more.
To access DPPs and the invaluable insight they contain, consumers and businesses alike can simply scan the data carrier (such as a barcode or QR code affixed to the physical product) with a device such as a smartphone.
Uniquely, DPPs can enable manufacturers to more easily access detailed information about the composition of products, the materials that make up a product, and their environmental footprint. This invaluable insight empowers manufacturers to make active decisions on the materials they bring into circulation and how to most effectively source environmentally friendly materials. This is particularly important when we consider certain industries and the amounts of hazardous waste some produce, such as the electronics industry and its use of substances like lead and mercury. In fact, as of 2022, approximately 62 million metric tons of e-waste were produced worldwide, yet only about 22.3% was formally collected and recycled.
With the data that DPPs provide, such as that noted above, also being accessible to all in the value chain - including the consumer - there is very clear guidance for consumers to also take more sustainable action. For example, in addition to providing information on the sustainability credentials of a product, manufacturers can provide information on the correct disposal when items reach end of life. This makes them a great tool to build consumer trust as - not only do they provide transparency, but businesses are able to validate sustainability claims - essentially becoming a win-win situation for all involved. Through such insight, consumers should feel reassured that the purchases or 'parts' of purchases they make have another lease of life.
DPPs also support manufacturers in their consumer appeal by providing a clear way to offer and access information on the sustainable ‘make-up’ of their product. This can include additional information on a range of fronts, including but not limited to where a product’s materials were sourced and key data points relating to the raw material extraction processes. By providing the consumer with such precise data on the entire lifecycle of a product, businesses can validate their sustainability claims and ensure accusations of greenwashing are quickly undermined via the proof points DPPs provide.
Similarly, DPPs are emerging as a powerful tool for building consumer trust by pulling back the curtain on a company’s sustainability efforts. By making it easy for customers to see how products are sourced, made, and maintained, DPPs directly address greenwashing concerns and help brands prove they’re walking the talk. This kind of transparency doesn’t just reassure consumers—it builds lasting loyalty by showcasing a company’s genuine commitment to responsible practices.
Beyond sustainability, DPPs are redefining the resale experience. Advanced DPPs can provide a secure way to confirm product ownership, track repair histories, and verify sourcing information—all of which are critical for secondhand buyers. This is especially valuable in the electronics space, where a lack of clarity around a device’s repairability or past use can make purchasing secondhand feel like a gamble. With DPPs, buyers get peace of mind, and sellers gain credibility—making the circular economy more accessible and trustworthy for everyone.
DPPs, sustainable enterprise, and the future for manufacturers
Manufacturers who are keen to thrive amidst both the shifting regulatory landscapes and changing consumer demand must not only take action now to comply with the EU’s circularity movement but also ensure their relevance in a world where circularity is coming under increasing scrutiny.
By embracing DPPs, companies can go beyond compliance and actively shape their identity as leaders in sustainability and circularity. Showcasing verified environmental efforts not only boosts credibility but also strengthens brand loyalty. Even outside the upcoming ESPR mandate, companies that adopt DPPs position themselves as forward-thinking and future-ready, demonstrating through data that they’re not just promising change, but ensuring it.
